INTERNSHIP REPORT

ON

ASKARI COMMERCIAL BANK LIMITED

By

Haseeb Akram Khan

Roll Number: 8768

Submitted in Partial Fulfillment of the Requirement for the Degree of

Master of Business Administration

At

Department of Management Sciences

National University of Modern Languages Islamabad

June, 2010
 .

National University of Modern Languages

Faculty of Information Technology and Management Sciences

It is hereby certified that the report has been thoroughly and carefully read and recommended to
the faculty of Management Sciences for acceptance of “Internship Report on Askari
Commercial Bank Limited” by Haseeb Akram Khan, Roll No. 8768 Session(1 Jan 2008 - 31
Dec 2009) Morning, in partial fulfillment of the requirements for the degree of Master in
Business Administration at National University of Modern Languages Islamabad.

Dated: __________________

Supervisor: ______________________________

Observers: ______________________________

Head of Department ______________________________

 Preface

“The internship program is to face the challenges of the highly sophisticated modern era. The

essence of internship program is to stuff the brain with all sorts of facts and formulae. This report

is an upshot of my six week internship at Askari Commercial Limited Bank Faisalabad.

During the six weeks practical glimpse, the theories and ideas, which I received from the books,

have been woven in the texture of my actual life. Verily it has helped me to personality grooming

and also having a clear professional approach. Certainly it will help me in my practical life.

Although a six week period is not enough to learn the complex operations of Askari yet I made

industrious efforts to express my experience comprehensively in the form of this report. This

report is a little effort to give the reader a professional insight about the training offered by the

“Askari Commercial Bank Limited Faisalabad”.

 DEDICATION

“I dedicate this internship report efforts to my parents and my

respectable teachers and my good friends who taught and hold
my hands on several occasions to complete this report”.
 ACKNOWLEDGEMENT

All thanks to Allah Almighty, the benevolent and compassionate, who blessed me with the
power & capabilities and remained contented on all intricacies found during the successful
completion of my Internship Report. I acknowledge my Mother for her prayers and Teachers
for their guidance because I think both are indispensable for success in every stage of life.

I also extend my thanks to Mr. Shehzad Ishaq along with all the Branch Staff for their
encouraging response and guidance to make my internship as a real learning experience
 EXECUTIVE SUMMARY

Askari commercial bank is first bank in the history of Pakistan to introduce modern technology
in the banking system through out the country with its head office in Rawalpindi. It had 75
branches in 2005 with in the country and one overseas branch at BAHRAIN. With the intension
to extend branch network, now in current year Askari bank is operating with 205 branches.
Askari Commercial Bank Ltd is venture of ARMY WELFARE TRUST (A.W.T) and was
established in 1992.

Askari commercial bank is involved in performing various function and services like accepting
deposit and making advances of loan, overdraft, facility to its credit worthy customer and loan
for investment. Also providing trade information and maintain account of Government and
general public.

Askari commercial bank has been performing consistently for over decade and achieved steady
growth in changing business and operating environment. The profit of Askari Commercial Bank
Ltd in the half year 2009 ended is 151.166 millions.

I decided to consider Askari Commercial Bank limited for internship because it is competing
bank now a day and gives a good training to internees. So in order to learn more this was my
choice.

This report is about my internship that I have undergone at Askari Commercial Bank Ltd,
Faisalabad. During my internship I have learnt practical aspect of business.

The rotation is done in order to have general concept regarding bank functions, operations and
policies. I stayed almost one week in each department (Account opening, Remittance, Clearing,
Import, Export, and Credit), where I got good knowledge and practical experience.

In account opening department, I learnt how to open account and procedure involve in account
opening. Which type of documents is required? How many types of accounts are opened in
Askari Commercial Bank Limited?

In clearing department major tasks is to send the cheques for clearing to NIFT. The function of
this department is to serve clients who want to get cash against cheques of other banks.

In credit department I learnt about loans and advances. How bank disburse the loans and
advances? Different types of credit facilities like financial against foreign bills and term facilities
(different types of mortgages, pledge and hypothecation to secure the granted debt).

In foreign trade department I learnt about import and export. What is letter of credit (L/C)? Who
and how open the L/C. Different document required in import and exports like E-Form,
insurance certificate, bills of lading and L/C application.
INTRODUCTION
1.1 Evolution and History of Banking

A banker or bank is a financial institution that acts as payment agent for customers, and borrows
and lends money. Banks act as payment agents by conducting accounts for customers, paying
cheques drawn by customers on the bank, and collecting cheques deposited to the customer’s
current accounts. Banks also enable customer payments via other payment methods such as
telegraphic transfer. Banks borrow money by accepting funds deposited on current account,
accepting term deposits and by issuing debt securities such as bank notes and bonds. Banks lend
money by making advances to customers on current account, by making installment loans and by
investing in marketable debt securities and other forms of lending and other forms of lending.

Banks provide almost all payment services and a bank account is considered indispensable by
most businesses, individuals and businesses. Non-banks that payment services such as remittance
companies are not normally considered an adequate substitute for having a bank account.

The history of banking is closely related to the history of money. As monetary payments became
important, people looked for ways to safely store their money. As trade grew, merchant looked
for ways of borrowing money to fund expeditions.

In Egypt and Mesopotamia gold is deposited in temples for safe-keeping. The concept of
banking arrived.

The first banks were probably the religious temples of the ancient world, and were probably
established sometime during the 3rd millennium B.C. Banks probably predated the invention of
money. Deposits initially consisted of grain and later other goods including cattle, agricultural
implements, and eventually precious metals such as gold, in the form of easy-to-carry
compressed plates. Temples and palaces were the safest places to store gold as they were
constantly attended and well built. As sacred places, temples presented an extra deterrent to
would-be thieves. There are extant records of loans from the 18th century BC in Babylon that
were made by temple priests to merchants. By the time of Hammurabi's Code, banking was well
enough developed to justify the promulgation of laws governing banking operations.

Ancient Greece holds further evidence of banking. Greek temples, as well as private and civic
entities, conducted financial transactions such as loans, deposits, currency exchange, and
validation of coinage. There is evidence too of credit, whereby in return for a payment from a
client, a moneylender in one Greek port would write a credit note for the client who could "cash"
the note in another city, saving the client the danger of carting coinage with him on his journey.
Pythius, who operated as a merchant banker throughout Asia Minor at the beginning of the 5th
century B.C., is the first individual banker of whom we have records. Many of the early bankers
in Greek city-states were “metics” or foreign residents. Around 371 B.C., Pasion, a slave,
became the wealthiest and most famous Greek banker, gaining his freedom and Athenian
citizenship in the process.

The fourth century B.C. saw increased use of credit-based banking in the Mediterranean world.
In Egypt, from early times, grain had been used as a form of money in addition to precious
metals, and state granaries functioned as banks. When Egypt fell under the rule of a Greek
dynasty, the Ptolemies (330-323 B.C.), the numerous scattered government granaries were
transformed into a network of grain banks, centralized in Alexandria where the main accounts
from all the state granary banks were recorded. This banking network functioned as a trade credit
system in which payments were effected by transfer from one account to another without money
passing.

In the late third century B.C., the barren Aegean island of Delos, known for its magnificent
harbor and famous temple of Apollo, became a prominent banking center. As in Egypt, cash
transactions were replaced by real credit receipts and payments were made based on simple
instructions with accounts kept for each client. With the defeat of its main rivals, Carthage and
Corinth, by the Romans, the importance of Delos increased. Consequently it was natural that the
bank of Delos should become the model most closely imitated by the banks of Rome.

Ancient Rome perfected the administrative aspect of banking and saw greater regulation of
financial institutions and financial practices. Charging interest on loans and paying interest on
deposits became more highly developed and competitive. The development of Roman banks was
limited, however, by the Roman preference for cash transactions. During the reign of the Roman
emperor Gallienus (260-268 CE), there was a temporary breakdown of the Roman banking
system after the banks rejected the flakes of copper produced by his mints. With the ascent of
Christianity, banking became subject to additional restrictions, as the charging of interest was
seen as immoral. After the fall of Rome, banking was abandoned in Western Europe and did not
revive until the time of the crusades.

However the commercial role of banks is wider than banking, and includes:

1Issue of banknotes (promissory notes issued by a banker and payable to bearer on demand)

2Processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other

means

3Issuing bank drafts and bank cheques.

4Accepting money on term deposit

 5Lending money by way of overdraft, installment loan or otherwise

6Providing documentary and standby letters of credit, guarantees, performance bonds,

securities underwriting commitments and other forms of off balance sheet exposures

7Safekeeping of documents and other items in safe deposit boxes

8Currency exchange

9Sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar
financial products as a 'financial supermarket'.

The economic functions of banks include:

1Issue of money, in the form of banknotes and current accounts subject to cheque or payment
at the customer's order. These claims on banks can act as money because they are
negotiable and/or repayable on demand, and hence valued at par and effectively
transferable by mere delivery in the case of banknotes, or by drawing a cheque,
delivering it to the payee to bank or cash.

2Netting and settlement of payments -- banks act both as collection agent and paying agents
for customers, and participate in inter-bank clearing and settlement systems to collect,
present, be presented with, and pay payment instruments. This enables banks to
economize on reserves held for settlement of payments, since inward and outward
payments offset each other. It also enables payment flows between geographical areas to
offset, reducing the cost of settling payments between geographical areas.

2Credit intermediation -- banks borrow and lend back-to-back on their own account as
middle men.

3Credit quality improvement -- banks lend money to ordinary commercial and personal
borrowers (ordinary credit quality), but are high quality borrowers. The improvement
comes from diversification of the bank's assets and the bank's own capital which provides
 a buffer to absorb losses without defaulting on its own obligations. However, since
banknotes and deposits are generally unsecured, if the bank gets into difficulty and
pledges assets as security to try to get the funding it needs to continue to operate, this puts
the note holders and depositors in an economically subordinated position.

5 Maturity transformation -- banks borrow more on demand debt and short term debt, but
provide more long term loans. Bank can do this because they can aggregate issues (e.g.
accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and
redemptions of banknotes), maintain reserves of cash, invest in marketable securities that
can be readily converted to cash if needed, and raise replacement funding as needed from
various sources (e.g. wholesale cash markets and securities markets) because they have a
high and more well known credit quality than most other borrowers.

1.2 DEVELOPMENT OF BANKING IN PAKISTAN

Pakistan is one of the key emerging markets of South Asia with a total population of over 140
million people. Pakistan’s GDP is expected to grow at over 5% during the year 2003-04.
Macroeconomic stability and financial sectors reform are targeted to have a positive, substantial
impact on real economy. The financial sector in Pakistan comprises of Commercial Banks,
Development Finance Institutions (DFIs), Microfinance Banks (MFBs), Non-banking Finance
Companies (NBFCs) (leasing companies, Investment Banks, Discount Houses, Housing Finance
Companies, Venture Capital Companies, Mutual Funds), Modarabas, Stock Exchange and
Insurance Companies. Under the prevalent legislative structure the supervisory responsibilities in
case of Banks, Development Finance Institutions (DFIs), and Microfinance Banks (MFBs) falls
within legal ambit of State Bank of Pakistan while the rest of the financial institutions are
monitored by other authorities such as Securities and Exchange Commission and Controller of
Insurance.

The banking sector in Pakistan consists of Commercial Banks and Specialized Banking
Institutions. During the quarter-1 of financial year 2008 as per SBP Quarterly report there has
been robust growth in deposit mobilization and credit off take with a rise of PKR 23.1 billion in
net credit to the private sector.

The banking sector in Pakistan is highly regulated. As the Central Bank of the country, the State
Bank of Pakistan regulates the banking sector with full autonomy. In general, State Bank of
Pakistan is responsible for licensing, directing, supervising, controlling and inspecting banks,
and for exercising various monetary control policy measures. In addition, the Securities and
Exchange Commission of Pakistan also monitors the operations of the listed banks in so far as
they relate to public shareholding matters.

The performance of the Pakistani banking sector has improved considerably in the years 2002
and 2003 on account of the following:

1The performance of nationalized banks has significantly improved as the restructuring

process initiated in these banks since the year 1997 has begun to show positive results.

2Banks, especially the nationalized banks have taken steps, to reduce their administrative
expenses versus total income

3The tax rates have reduced from 58% in 2001 to 50% in 2002 to 44% in 2003 to 41% in
2004 and will decline to 38% in 2005 and reach 35% for 2006 onwards.

The State Bank of Pakistan/ Ministry of Finance has introduced the following reforms in the
banking sector:

1Further strengthening of Prudential Regulations.

2The policy for opening and closing of branches has been significantly liberalized.

3A free-floating market driven exchange rate system has been introduced. In addition,
restrictions on buying and selling of foreign exchange by banks have been removed.

4The Banking Companies (Recovery of Loans, Advances, Credits and Finances) Act, 1997
was introduced in February 1997. Special banking courts have been established under
this Act to facilitate the recovery of non-performing loans and advances from defaulted
borrowers.

5The Government has formed the Corporate and Industrial Restructuring Corporation
(CIRC) to take over the non-performing loan portfolios of nationalized banks on certain
agreed terms and conditions and issue government guaranteed bonds earning market rates
of return. The purpose for which CIRC has been established is two-fold:

o to concentrate recovery efforts against loan defaulters

 o to improve the profitability of nationalized banks

6Appointment of independent persons to the Board of Directors of the Nationalized

Commercial Banks

7The requirement for minimum capital of banks has been enhanced to Rs 1 billion to
encourage consolidation of smaller banks.

8To improve the quality and reliability of reporting, the format of statutory accounts has been
revised on the basis of International Accounting Standards, quarterly reporting to the
shareholders has been initiated, and periodic reporting to regulators has increased. In
addition, the State Bank of Pakistan has published a list of approved auditors for various
sizes of banks.

9Good corporate governance culture is being enforced, both by the SBP and SECP, covering
director’s responsibilities, improved reporting, empowerment of audit committees and
internal audit and independence of external auditors.

10Credit rating for all commercial banks has been made mandatory.

11Extension in the period of carry forward of losses to 10 years and offsetting of losses by
parent company in case of acquisition is allowed.

12Tax rates for commercial banks have been reduced.

13Tax laws have been changed to facilitate merger and acquisition of banks and financial
institutions by allowing group tax loss relief.

14Government bonds have been issued against long outstanding tax refund claims of banks.
Consequently, this will lead to an increase in the profitability of these banks, as funds
blocked in non-earning assets will be converted into earning assets.

The key trends in the banking sector are as follows:

1Increased Merger & Acquisition activity in the banking sector with local private banks
 having made several domestic acquisitions

2Large expansion of branch network and deposits by private and some foreign banks

3Rationalization of branches by nationalized banks

4Increased focus towards consumer finance

5Increased focus on attracting local rupee deposits

6Increased emphasis towards automation and customer service

7Reduction in the increase in non performing loans as a result of better governance of banks
and greater accountability process initiated by the government.
1.2.1 BANKS IN PAKISTAN

Following are the banks that are functioning in Pakistan.

A. CENTRAL BANK

1State Bank of Pakistan

B. NATIONALIZED BANKS

2First Women Bank Limited

3Khushhali Bank

4National Bank of Pakistan

5The Bank of Khyber

6The Bank of Punjab

C. SPECIALIZED BANKS

1The Punjab Provincial Co-operative Bnak Limited

2Zarari Taraqiati Bnak Limited

3SME Bank of Pakistan

4Industrial Developmentr Bank of Pakistan

D. PRIVATIZED BANKS
 5Allied Bank Liited

6Habib Bank Limited

7MCB Bank Limited

8United Bank Limited

E. PRIVATE BANKS

1Askari Commercial Bank

2Bank-Alfalah Limited

3Atlas Bank Limited

4Faysal Bank lImited

5Bank Al-Habinb Limited

6Habib Metropolitan Bank Limited (Karachi)

7KASB Commercial Bank Limited

8PICIC Commercial Bank Limited]Soneri Bnak Limited

9My Bnak Limited (Karachi)

10Meezan Bank Limited

 11Saudi-Pak Commercial Bank Limited

12Crescent Commercial Bank Limited

13BankIslami Pakistan Limited

F. FOREIGN BANKS

1ABN AMRO Bank

2AlBaraka Islamic Bank

2Citibank (Karachi)

3Hing Kong & Shanghai Banking Corp. Ltd.

4Oman International Bank (Karachi)

5Dubai Islamic Bank

The author has completed his Internship in Askari Commercial Bank in fulfillment of
requirements for the degree of MBA. This report is being submitted after the completion of six
weeks practical training at Askari Commercial Bank Satellite Town Rawalpindi. Therefore, now
I am going to explain the history, activities of Askari Commercial Bank and my experience.

1.3 ASKARI BANK HISTORY

Askari Commercial Bank Limited works as a unit of army welfare trust was established for the
welfare of army officials. The office of army welfare trust is situated at AWT Plaza Rawalpindi.
AWT offers the “AWT Saving Scheme” to the army officials only. AWT has its unit as Follows.

1 Askari Associates
2 Askari Leasing

3 Askari General

4 Private Business

5 Textile Mills

6 Cement Industry

7 Askari Commercial Bank

It incorporated in Pakistan on Oct. 09, 1991. The bank obtained business commencement
certificate on Feb. 26, 1992 and started operations from April. 1, 1992, as public limited
company, and has since expanded into a nation-wide presence of 140 branches, handled by a
human capital of 5000 employees and lowest turnover in Pakistani banking sector. The bank is
listed on the Karachi, Lahore and Islamabad stock exchanges and the initial public offerings was
over subscribed by 16 times ACBL is principally engaged in the business of banking as defined
by the Banking Companies Ordinance, 1962.

ACBL continues to scale new heights in all areas of its operations. The safety and security of
depositor’s funds, high productivity and optimum use of technology are the hallmarks of its
corporate strengths.

While capturing the largest market shares amongst the new bank I see that Askari has provided
good value to its shareholders. Share price of ACBL has remained approximately 12% higher the
average share price of quoted banks during the last four year.

Askari bank is principally engaged in the business of banking as defined in the banking
company’s ordinance, 1962. As at December 31, 2002 the bank had total assets of PKR 70.313
billion, with over 250000 banking customers

ACBL is the only bank with its operational Head Office in the twin cities of Rawalpindi
Islamabad, which have relatively limited opportunities as compared to Karachi and Lahore. This
created its own challenges and opportunities, and forced us to evolve and outward-looking
strategy in terms of our market emphasis. As a result, ACBL developed a geographically
diversified assets base instead of a concentration and heavy reliance on business in the major
commercial centers of Karachi and Lahore, where most other banks have their operational Head
offices.
1.3.1 The Vision

“To be the bank of first choice in the region”

1.3.2 The Mission

“To be the leading private sector bank in Pakistan with an international presence, delivering
quality service through innovative technology and effective human resource

management in a modern and progressive organizational culture of meritocracy, maintaining

high ethical and professional standards, while providing enhanced value to all our stake-holders,
and contributing to society”

1.3.3 Core Values

The intrinsic values, which are corner stones of our corporate behavior, are:

1Commitment

2Integrity

3Fairness

4Team-work and

5Service

1.4 ORGANIZATION ORGANOGRAM

From the above organ gram we see that there are different types of departments in Askari bank
and the explanation of its department and operations are given below.

1.4.1 Accounts Department

Accounts Department is quite important department of the Bank. Following are the
responsibilities of the said department.

a.Checking of Activity on Daily Basis

b.Maintenance of SBP Account

c.Payment of Bills to Different suppliers/couriers etc.

d.Depreciation Vouchers at end of Each Month

e.Payment of Staff Salary

f.Submission of all relevant statements to SBP/Head Office

1.4.1.1 Daily Bank Position Statement

All relevant reports pertaining to the whole day working are printed out in the daily working
procedure of End of Day run by the Computer Department. Some reports in which each
financial transaction either pertaining to customer’s accounts or to General Ledger Accounts is
printed in this procedure are called Daily Activity Reports.

This is responsibility of Accounts Department to check each transaction made through computer
posting in order to assure that the entry passed in quite right and correct.

Each & every voucher is sorted out and then is placed in the following bunches according to its
nature.

1.Saving Accounts

2.ASDA Accounts

3.FCY Accounts

4.Head Office Vouchers

5.Current Deposit Accounts

1.4.2 Term Deposit Department

Accepting deposits is one of the important functions of a bank. Deposits are as necessary to the
bank as blood to the human body. It is backbone of the bank. The banks receive surplus income
of the individuals, companies in the form of deposits. These deposits are useful in many ways as
they provide source of earning for the bank and help in meeting the consumption and business
needs of community. The surplus of money in a country is also influenced by the aggregate
quantity of bank loans. All the deposits are in fact liability of the bank, as the bank has to offer
suitable rates of interest on these deposits to the depositors or simply have to repay them on
demand. Bank performs its business with depositor’s funds and earns profit on these deposited
funds.

A deposit made for a certain period of time is called Term Deposit. At the end of the specific
period, the customer is allowed to withdraw the principal amount. The bank pays handsome
profit rates on Term Deposits.

Askari Commercial Bank Limited is offering following types of Term Deposits to its customers:

1PLS Notice Deposits

2PLS Term Deposits

3Askari Advantage

4Askari Bachat Certificates

1.4.3 ATM Department

Auto Teller Machine (ATM) is one of the more convenient services rendered by ACBL to its
customers. It offers you 24-Hours Cash Payment through highly equipped global system of
NCR ATM Machines. A person can withdraw an amount of Rs.10, 000/- from his balance
amount in 24-Hours.

ATM Cards are only issued to the people who are having their accounts in ACBL. More than
5000 ASKCASH cardholders are in Rawalpindi. The procedure for issuance of ATM Card is as
following:

When a person opens his account with ACBL he has the option to avail ATM Card Facility. For
the purpose, he has to fill ATM Application form in which name of account holder, address and
account number is to be reported.

ATM Cards are issued from Head Office of ACBL and it takes 6-7 days for issuance of fresh
ATM Card. For this extra ordinary and lucrative facility, ACBL deducts nominal charges @
Rs.200/- per year on six monthly basis (Rs.100/- after every six months).

The ASKCASH card is your key to 24-Hours Banking Facility extended by the bank. This card
is your electronic purse, which provides you easy access to your cash requirement wherever, and
whenever you need it, all over the country, through the

ASKCASH ATMs. ASKCASH is ACBL’s commitment to provide convenient banking to its

customers.

Askari commercial bank has recently introduced a mobile ATM, which is a bus that can reach at
any branch of Askari bank whose ATM machine is out of order. Now the customers of Askari
commercial bank are not required to wait, until ATM machine get corrected.
1.4.3.1 Personal Identification Number (Pin)

This is a 4-Digit confidential number, which is know only to you and should be kept secret. The
PIN can be changed any time at your discretion. This is the basic need of your ATM Card.

1.4.4 Remittance & Bills Department

This department provides services to the customers of the bank. The main function of this
department is transfer of funds. There are different modes of Remittances:

1Demand Draft

2Telegraphic Transfer

3Mail Transfer

4Pay Order

5Pay Slip

6OBC

7IBC

1.4.4.1 Bank Draft/Demand Draft

A bank draft is an order instrument issued for payment of a certain sum of money to the order of
a certain person and drawn on one office of the bank by another office. Actually the DD is
drawn on the same bank at the different branches. If two banks are involved, then the DD is sent
to the other bank but in the other case, it is handed over to the applicant. There are three parties
to the draft:

Drawer: Issuing Bank

Drawee: The bank on which the draft is drawn

Payee: The named person to whom the payment is to be made

Standard application form is used for issuance of demand draft, which is to be filled in by the
client properly and to be surrendered with cash or cheque covering the amount of the draft and
other charges of the bank.

After issuance of a bank draft, it is handed over to the applicant and its advice containing the
particulars of the draft is sent to Drawee Branch for their necessary information and payment of
the draft on its presentation.

1.4.4.2 Telegraphic Transfer

Generally a mail transfer advice reached the Drawee Branch the next day, where courier
arrangements exist. However, when it is sent through post offices, it usually takes 2 to 3 days to
reach its destination. But sometimes, an individual whether customer or not, demands that his
funds should be transferred from one place to another place through the quickest means. In such
cases, transfer of funds message is passed on through a telegram, or express, to the Drawee
branch of the bank. A tested message is sent to the Drawee Branch followed by the confirmation
copy.

In this case the payment is immediately required by the payee, the tested message is given on the
telephone.

Besides normal charges as those recovered on issuance of demand draft, the bank charges on
additional expenses, i.e., Telephone Charges/Fax Charges of Rs.150/- are also recovered from
the customer.

1.4.4.3 Pay Order P.O.

A banker’s payment order is an instrument drawn at him. Implicit in a payment order is an

undertaking on the part of the banker to pay a certain sum of money, on the presentation of the
instrument. The payment orders are generally issued for a client.
1.4.5 Credit Department

Lending or financing is one of the basic functions of banks of all categories, through which they
exercise major part of their profitability. So this department deals with the preparation of
proposals of advances, and then submitting them to Head Office for approval and sanction of
limit to the worthy customers, according to existing policies of Head Office in respect of mode
of Financing.

1.4.5.1 Types of Financing

Generally two categories are known as types of financing:

a.Fund Based Financing

b.Non Fund Based Financing

1.4.5.2 The Purpose of Financing

The borrower must disclose factual purpose for seeking financial accommodation from bank
without such, the proposal should not be given due consideration.

The possible purposed may be as following:

1. Export Finance/Packing Credit

2. Import Trade Financing

3. Working Capital need for Trade & Industry

4. Fixed Investment for Industry (Project Financing)

1.4.6 Computer Department

Computer Department is the most important department in the computerized banking sector.

In Askari Commercial Bank Limited, where most of the banking works is computerized;
following are the responsibilities of the officer handling the department.

1.4.6.1 Start of Day

This is the first procedure adopted by the officer of the computer department after opening of the
bank each morning. To start computers and a particular procedure on which all the day working
depends called Start of Day. In this procedure, we feed in the computer date or working, next
date of working, expected number of transactions, etc. and other relevant information which are
required for the whole day working.

1.4.6.2 Uploading of ATM

After successful start of day and initialization of dates, first work to be done by the officer
concerned is uploading of ATM. In this procedure all the transactions made at night after the
Head Office authorizes close of business by ATM.

1.4.6.3 CONNECT TO HBI

This is the main process, which enables the computer to make satellite link with main serves of
Head Office. It enables the branch to make ONLINE Transactions for the day.

After making all the necessary and important working the computers are ready for all day
transactions.
PRODUCTS AND SERVICES
Product and Services of Askari Bank

Askari bank provides following product & services to its account holders.

2.1 Consumer Banking Services

2.1.1 Personal Finance

Personal Finance is a parameter driven product for catering to the needs of the general public
belonging to different segments. One can avail unlimited opportunities through Askari Bank's
Personal Finance. With unmatched finance features in terms of loan amount, payback period and
most affordable monthly installments, Askari Bank's Personal Finance makes sure that one gets
the most out of his/her loan. Once a good credit history is established, the door to opportunity
opens much wider.

One can avail unlimited opportunities through Askari Bank’s Personal Finance. With unmatched
financing features in terms of loan amount, payback period and most affordable monthly
installments, Askari Bank’s Personal Finance makes sure that you get the most out of your loan.
No matter what your need is, Askari Bank has more ways to serve you than ever before.

2.1.2 Mortgage Finance

Askari "Mortgage Finance" offers the convenience of owning a house of choice, while living in
it at its rental value. The installment plan has carefully designed to suit both the budget &
accommodation requirements. It has been designed for enhancing financing facility initially for
employees of corporate companies for purchase/ construction/ renovation of house. Ever since
the inception of life, shelter has been rated among the primary needs of mankind. Owning a
home for oneself still remains an exclusive dream for many. Askari Bank has made the
realization of your dream to have a house of your very own possible. Whether you plan to build a
house, tailor made to your requirements or buy a constructed house, Askari mortgage finance
enables you to pursue your goal without any problems.
2.1.3 Business Finance

In pursuance of the National objectives to revive the economy of the country, ACBL is providing
loans to small and medium size business enterprises under Askari Bank's Business Finance
Scheme. Our goal is to offer a loan, which enables business community to receive the financing
required by them based on their cash flows. Our valued customers can enjoy the convenience of
getting financing on attractive terms with the minimum processing turnaround time. You always
wanted to put in that extra money into your business, which makes it grow and grow! Now you
can stop worrying about your daily cash requirements, and start enjoying our unique Askari
Business Finance facility. Available upto 60% of the assessed market value of your residential
property, through equitable/token mortgage.

2.1.4 Smart Cash

This personal line of credit would be set up with a specified credit limit upto Rs. 500,000/-

2.1.5 Auto Financing

Yet another of our products, Askar offers the most convenient and affordable vehicle- financing
scheme, which provides our valuable customers an opportunity to own a brand new vehicle of
their choice. With minimum down payment, lowest insurance rates and widest range of available
car makes and models, Askcar offers the best value to our esteemed customers.

Askari Bank offers you the most convenient and affordable vehicle financing scheme to help you
own your favorite brand new car.

2.1.6 Askari Debit Card

Askari Bank is committed to provide you innovative and competitive solutions to your banking
needs in a more efficient and personalized manner. Your Bank enjoys a strategic competitive
advantage over all domestic players by virtue of its leadership, large network and technological
advancement. In line with our tradition of innovation, Askari Bank takes pride in announcing
launch of "Askari Debit Card"- Askari Bank's Debit Card. Askari Debit Card is tailored to your
shopping needs and is another valuable financial solution reflecting our commitment to build
lasting relationship with you.
Askari Debit Card means freedom, comfort, convenience and security, so that you can have retail
transactions with complete peace of mind. Askari Debit Card is your new shopping companion
which enhances your quality of life by letting you do shopping, diner at restaurants, pay your
utility bills, transfer funds, withdraw and deposit cash through ATM anywhere, anytime.

2.1.7 Travelers Cheques

The range of our products and value added services enhances with introduction of Rupee
Travelers Cheques (RTCs) launched in March 2002. In spite of our constraint on issuing higher
denomination of RTCs against restrictions imposed by the Central Bank of Pakistan we have
been striving to attain our shares with sizeable portfolio.

Askari Commercial Bank Limited has always remained at forefront in introducing innovative
and unique products in banking sector. Our financial instruments provide greater financial
freedom and security in an unmatched way to our valued customers. Askari Bank offers you its
"Rupee Traveler Cheques" eliminating all financial risks while traveling. So avoid risk of
carrying cash through Askari Bank's Rupee Traveler Cheques.You’re Best Traveling
Companion.

Why Askari Bank's Traveler Cheques?

1. Free Issuance.

2. Free Encashment.

3. Plus commission for the Customer at the time of encashment if retained for a specific
period.

4. Nationwide acceptability.

5. Facility of encashment in cash to the purchaser.

6. Facility of encashment through clearing.

7. No purchasing limit.
 8. Valid until enchased.

9. Easily Transferable.

10. Account relationship not mandatory.

11. Fastest refund procedure in case of loss/theft.

12. Safe & Secure due to foreign printing with multiple security features.

13. Available in Rs. 10,000 Denomination at all branches of Askari Bank.

14. No withholding tax on sale or encashment*.

2.1.8 Value plus Deposits

The first liability product launched by this unit is showing a remarkable acceptability in the
market. The growth of this product is witnessed by its share, which has presently reached at Rs.
1,079 Million even after lowering down the profit rates due to sufficient liquidity in the market

2.2 Islamic Banking Services

Islamic Banking was launched under the brand 'Askari Islamic Banking', by opening 6 dedicated
Islamic Banking branches in major cities of the country. Further expansion is planned with
improved capabilities for offering products conforming to the Shariah principles.

Askari Islamic Banking opens the doors for Halal banking solutions. Our objective is to put in
place an efficient banking system supportive to economic justice and welfare of society in line
with Shariah standards.

A comprehensive range of Islamic Banking products and services is being offered, in order to
meet customer's demand of Shariah Compliant Banking, in the following areas:
  Islamic Corporate Banking

 Islamic Investment Banking

 Islamic Trade Finance

 Islamic General Banking

 Islamic Consumer Banking

Islamic Banking products have been approved by the Bank's Shariah Advisor. As per Shariah
requirements, funds and products of Islamic Banking are managed separately from the
Conventional Banking side. All funds obtained, invested and shared in Halal modes &
investments, under supervision of the Shariah Advisor.

2.3 Agriculture Finance Solutions

The role of agriculture in Pakistan economy is of pivotal nature. Due to diverse geographical and
climatic conditions the country has tremendous potential for growth and development in
agriculture. However, adequate and timely financial assistance to the farmers will improve
production potential of agriculture sector in the country. The modern concept of agricultural
credit envisages establishment of an efficient institutional credit system to serve as a package of
credit, supplies and knowledge for the overall strength of the farmers who at present suffer from
low productivity and financial insecurity. A successful credit evaluation system, therefore,
should have the basic ingredients to provide adequate amount at the right time and in the right
form to help farmers in making a productive use of loan funds.

2.3.1 Askari Kissan Agriculture Finance Program

The Askari Kissan Agri Finance Program (AKAFP) has been designed to meet ON FARM / OFF
FARM credit requirements of farmers on the most convenient, flexible, easy terms and
conditions. The program features:
  A broad array of credit lines designed to meet farming requirements.

 Repay and borrow at your convenience on revolving credit basis at lowest mark-up rates
renewal able after three years.

 Convenient repayment terms based on cash flow abilities.

 Availability of leased Tractors / Transport without Land / Collateral.

 No Hidden Cost.

 Availability of interest free package for inputs and tractors etc.

 No Pre-adjustment penalties.

 Earn prompt payment Bonuses and reduce financial costs.

 Insurance cover of leased assets, animals, crops and life assurance of borrowers.

2.3.2 Kissan Tractor Finance

Traditional modes of cultivation viz Bullocks, Camels, horses etc can no longer keep pace with
the demands of present times due to manifold increase in the population. Power in the form of
modern technology is therefore the need of the hour. To meet this emergent requirement, Askari
Bank has launched a Askari Kissan Tractor Finance to bring power to the fields.

Salient Features of the Program are:

 This program has been designed to benefit the owner as well as non-owner farmers.

 The farmer will have privilege of availing non-funded facility at a reduced cost under this
program on account of more equity participation.
  Although the facility is available for a period of five years. However, good farmer bonus
will be available to the borrower in case the loan is repaid as per terms of sanction.

 Priority in delivery of tractor will be given by manufacturer as per arrangements with the
bank.

 The farmer’s life & tractor will be insured against contingencies, which will provide
comfort and piece of mind.

2.3.3 Kissan Aabpashi Finance

Agriculture farming is impossible without adequate water. We can combat the prevalent water
scarcity by harnessing more natural resources. Increased use of mechanical means thus provides
a ready alternative. Keeping in view the scarcity of water, which is the lifeblood of arable lands,
Askari Bank has started a program for farmers, to finance installation of Tube-Wells (electric,
diesel and solar energy units) water management equipments and water channel development
etc., which will help farmers to make optimum use of limited water resources.

Salient Features of the Program are:

• To facilitate the farmer, to overcome the scarcity of water.

• To develop mechanical water resources, sprinkler and drip system etc.

• To avoid traditional / inefficient modes of irrigation and waste of available water.

• To manage natural / available resources through water management practices.

2.3.4 Kissan Farm Transport Finance

A grave handicap that afflicts our farmers is their inability, due to lack of proper facilities, to
take their produce to the market through efficient means of transportation. This adversely affects
the freshness, quality of the product and denies them the desirable Price-Fetching opportunity.
Conversely, they lack mobility to acquire much needed inputs essential for their farming needs.
One can safely conclude that if provided with appropriate and speedy transport, the farmer can
benefit by enhancing his selling ability and thus increase his income / cash flow. it is pertinent to
mention that a number of Banks, Leasing Companies and Private Agencies have geared their
marketing efforts to concentrate on and have mainly captured the urban markets. There is no
support provided to cater to the transport needs of deserving rural farmer’s community. Askari
Bank true to its commitment has taken the lead to launch Askari Kissan Farm Transport Finance.

Salient Features of the Program are:

 To increase mobility and access of the farmer to the markets.

 To lower the burden / cost of transportation against hired transport.

 To create awareness of market movements in order to obtain maximum price of their

produce.

 This will also supplement the income of the farmer which will ultimately enhance the
repayment capacity of the borrower.

 Additional income can be generated if used for hired services to the fellow farmers

.
WORK EXPERIENCE
3.1 Work Experience

I started my internship on June 10. I worked on different departments and sections of Askari
Commercial Bank like:

1.Accounts

2.Credits

3.Remittances

4.Lockers and

5.Deposits

During my stay in Askari commercial bank I tried my level best to grasp as much practical
experience and knowledge about the working of the banks as I can. I spent different duration of
time in all above five departments. The working experience that I learned during my stay in the
different department of the bank is as follows:

3.1.1 Accounts Department

I started my internship from accounts department, first day I reported to accounts officer Mr.
Masood malik. He gave me some information about accounts section and also introduced me
with the staff of the branch. My first work in the accounts section was to sort the vouchers
according to the account number. The account numbers contain 12 digits, out of which first two
are branch code, other two are currency code, other three are type of account, next four are the
customer title and the last one is computer no. e.g. 440101098751 can be an account number.

The title of the account can be read through different codes e.g.

010 current deposit (CD)

100 profit and loss saving account (SB)

107 Askari value plus (AVP)

165 Askari saving deposit (ASDA)

A. Current Account:

A current account is a running account, which is continuously in operation, by the customer on

all working days of the bank, the customer deposits without previous notice to the bank. Before
opening of current account there must be some important point which you should keep in your
mind.

A.1 Points to Remember:

1Current account can be opened with an initial deposit of not less than Rs. 5000. The amount
of initial deposit should be mentioned on AOF

2It is an open account for which there is no fixed period for deposit.

3There is no restriction on making deposits in and withdrawals from this account.

4Bank does not pay any inertest on these deposits, as they can be withdrawn without notice.

5Cheques are used for withdrawals from theses accounts.

6Loans and credits may be sanctioned to the credit worthy current account holders with ease.

B. PLS Saving Bank Account:

Saving deposits were introduction to inculcate and encourage the saving among people of small
means in order to achieve the Isalmisation of the banking sector in the country, the government
authorized the banks to accept saving deposit on profit and loss sharing basis. Deposits received
under this scheme are invested in non-interest bearing advances and other avenue so as to
eliminate the element of interest.

B.1 Points to Remember:

1The PLS Saving account may be opened in the name of an individual, or jointly in the
names of two or more persons. These accounts may also be opened by charitable
institutions or got provident fund and other funds of benevolent nature by 765local
bodies, autonomous corporations, companies, associations, societies and educational
institutions.

2PLS SB Accounts can be open with initial cash deposit of not less than Rs. 10000/-. The
amount of initial deposit should be mentioned on AOF. A minimum balance of Rs. 500
(or as per bank policy announced from time to time) will have to be maintained for
qualifying for sharing profit/loss.

3Not more than one account may be opened in any one name except in cases where such
accounts are opened in the name of parent or guardian for more than one child.

4Statement of PLS Accounts are normally provided once in every six months as on June 30
and December 31.

5No service charges shall be levied on PLS saving account as per SBP prudential regulations.

C. Askari Special Deposit Account (ASDA)

As it is apparent from name, ASDA Account is special account with all facilities of current
account along with profit facility. Profit is paid on monthly average balance. Minimum balance
required for eligibility of profit earning is Rs.50, 000/-. The profit rate increases with the
increase in balance. The payment of return is monthly. This account is more attractive for
businessmen but individuals having handsome balances also prefer to open this account.

The other works for which account officer and staff in the accounts department are to pay the
salary to all the staff of the bank, charge the depreciation for all the furniture in the bank,
approve the leave application for staff of the bank, keeping the inventory level which is required
for the daily working of the bank i.e. stationary and other necessary items, handle the grievances
that occur among the employees e.t.c. I spent almost two weeks in the accounts department.

3.1.2 Credit Department

After working there I was transferred to credit section, where I worked under the supervision of
credit officer Mr. Imran. There I learnt how the banks gives credit to customers, what legal
documents are required to sign both by customer and the banker, how the amortizations are make
in the banks. Before the sanction of the loan the customer of the bank has to sign four legal
documents, document no. 1, document 7 A, hypothecation document e.t.c. The person who wants
to get a credit from a bank must have to open an account in the bank that is he must be an
account holder of the bank. The banker keeps the minimum amount of the cheques for settling of
the amount of the bank. And withdraws the amount that is for the installment. If in any case the
cheque is not honored, the banker makes the report to the bank with the help of retail banking. I
can conclude my work in the following words.

1Credit Lending Profile (CLP) compilation is the gathering of the documents required on the
basis of which loan is disbursed.

2Loan Disbursement

3Amortization scheduling and formation of Disbursement Certificate

4Credit Accounts Opening

In credit department when bank made the credit it design the credit report, Actually Credit report
is the collection of maximum facts about the depositing customers or borrowing customers with
thorough investigation and compiled by a senior officer preferably the Branch Manager.

These facts can be divided into three categories:

1.Historical Facts

2.Financial Facts

3.Investigational Facts

3.1.2.1 The Need of Credit Report

Credit report is prepared to provide courteous services to depositing customers and sound
lending to the borrowing customers therefore, we must know:

Who the depositing customers are?

Who the borrowing customers are?

A credit report is the only source available with us to answer these questions.

3.1.2.2 Why Credit Investigation?

Financing has always been one of the principal sources of Income or commercial banks and
usually represents one of the principal assets of the Bank.

Credit investigation helps the Manager in the quality of good financing therefore, the extension
of credit on a sound basis is essential to the growth and prosperity of a Bank.

3.1.2.3 Interview with the Borrower

The most important investigational procedure is the interview or series of interviews with the
applicant. The initial interview should be conducted with tact. The applicant has a great deal of
pride in his accomplishments. One must be a good listener, but must also ask sound financing
questions because the borrower may innocently or purposefully omit important facts.

The following questions must be answered:

•Who is the borrower?

•What is the purpose of Finance?

•How much credit is required?

•How will the specific credit solve the problem?

•When will the finance be repaid?

•Where from the funds will come to repay the finance?

•What will be the period of finance?

•What is the nature of security offered by the borrower?

3.1.3 Deposits Department

From credits section I was transferred to deposit section. There I learnt how accounts are opened
in the banks and how their processing is done in the banks. For the opening of the customer have
to deposit minimum amount of the specific account with the bank, such as for opening current
account with the bank the customer have to deposit minimum amount of Rs 5,000 with the bank,
and for opening of Askari Special Deposit Account the customer have to make a initial deposit of
Rs 50,000 with the bank, and for opening of Saving account with the bank the customer have to
deposit minimum amount of Rs 2,500 with the bank. The customer have to fill a account opening
form which they gets from the bank, and gives two signatures on the signature specimen card. I
can conclude my work in the following words.

1Account Opening procedure

2Change of signatures

3Updating of record especially updating of new CNIC numbers and addresses

 4Calculation of profit on different accounts

5Requisition slips for the purpose of issuing new cheque book.

A. Account Opening Procedure

When a customer opens an account, he enters into a contractual relationship with the bank. As
such all requisites of the contract are to be fulfilled properly. For instance, at the time of opening
the account, the intended customer must have following characters.

a.Must be adult

b.Must be of sane mind

c.Must not be insolvent and bankrupt

d.Must not be bewared under any law from entering into any contract

While opening accounts the officer must see that the above qualifications of the customer are
established.

B. Change of Signatures

If customer wants to change his signature then he should personally visit to the bank and explain
why he wants to change his signature normally in Askari bank we do not allow the customer to
change his signs once he had sign on the signature sign (SS) card then he is not allowed for
making amendments in his signature but if he wants to change sign then he should open new
account for it.

C. Updating of Records:

Some times it happens that customers usually change their home addresses for this customer
should go to bank and give his new address to bank, after taking new address from him bank
makes the changes in its record system so bank can deliver letters to the proper and exact
address.

In deposit department my concerned officer Mr. Masood told me that following things should
kept in mind when you are going to open an account.

D. Calculation of Profit on Different Accounts:

Askari bank gives profit to its account holders on ASDA and saving account, ASDA is the
Askari Special Deposit Account the initial deposit of this account start from Rs.50000 to onward.
Askari bank has set different rates on the different amounts. While on saving account the bank
gives profit on the remaining balance which customer has in his account the rate of profit vary
from remaining balance.

E. Requisition Slips for Purpose of Issuing of New Cheque Book:

There are some requisition slips of bank that often use when customer finish its cheque book
leafs, for very first time bank issue the cheque book to its customer it will use FORM “A”
requisition but on second time it will issue cheque book on FORM “B”.

3.1.3.1 Main Points

• As much information as possible must be elicited from the prospective customer relating to his
means, line and place of business.

•Each and every column of the account opening form should be properly filled in along with all
relevant details.

•Account must be properly introduced. As far as possible the person introducing the account
should attend the bank personally with the prospective customer.

•In case the person introducing the account does not call at the bank, extreme care should be
taken while verifying genuineness of his signatures.

•Staff members generally should not introduce the account. They should introduce accounts of
 those persons only who are personally known to them.

•Introduction from persons having doubtful dealings with the bank should be discretely declined.

•Signature on the account opening form as well as specimen signature card must be put in by the
customer in presence of the bank officers/manager who will attest them preferably in
presence of the introducer.

•Letter of thanks should be sent to the introducer very next day the account opened. This
precaution would accomplish the purpose of intimating the introducer that the account has
been opened on strength of his introduction thereby inviting disclaimer of untrue.

3.1.3.2 Documents Required

For literate person, copy of National Identity Card is required as a primary requirement. For
illiterate person and pardanashin women, it is required that he/she must visit in person along with
the copy of National Identity Card. After that I learned that how cheque book is being issued to
bank customer.

3.1.3.3 Issuance of Cheque Book

The customer for withdrawal of any amount uses chequebook. Requisition slip is required for
issuance of chequebook. Requisition is a request from customer for issuing chequebook.

When an account is opened, cheque book is usually issued on the very next day, however the
same can be issued on the same day if the customer is well known to the bank and already
maintaining accounts, the bank has no objection to issue cheque book on the same day. After
issuance for the first time, chequebook is reissued on proper request of the customer after
surrendering requisition slip of the previously issued chequebook.

Cheque books containing 25 & 50 leaves are issued to current & ASDA accounts whereas PLS
Saving account are normally issued 10 leaves cheque book, however upon specific request of the
client, 25 leaves cheque book may be issued also.
3.1.4 Lockers Department

From there I was transferred to lockers section I spent about four days in the lockers department.
There are three sizes of lockers available in the Askari Commercial Bank, large, medium, and
small. Like credits the person who wants to avail the facility of the lockers must have to be an
account holder of the bank. The rates of the lockers vary with the size of the lockers. A person
who wants to get a locker must have to come with the copy of ID card and he/she can get the
locker instantly. The banks have two keys of the locker one is given to the person, who want to
get a locker, and other one bank keeps with it self, the locker will only open if both the keys of
the locker used at the same time. Following operations comes in this head.

1Lockers opening and operations

2OBC Cheques stamping and lodging

3Formation of OBC forwarding schedule.

3.1.4.1 Types of Lockers

1Small:

If customer wants to operate small locker then he/she has to pay Rs. 25000 to bank as a security
this money is refundable and customer can take it back when he will close his account.

2Medium:

If customer wants to operate Medium size locker then he/she has to pay Rs. 30,000 to bank as a
security this money is refundable and customer can take it back when he will close his account

3Large:

For large size locker customer has to give Rs.45000 to bank and this is also refundable.

3.1.5 Remittances Department

I spent my last week in the remittances department. There I worked under the supervision of Mr.
Israr. He is in charge of remittances department. There the checking of the cheques are done, any
cheque which is of heavy amount like 25,000 or more is to be supervised first from the
remittances department. The remittances department also does the OBCs. The OBC is outward
bill for collection. In remittance department the following things comes

1Demand Draft

2Pay Order

3Pay Slip

4Telegraphic Transfer

3.1.5.1 Demand Draft:

It is an instrument payable on demand for which value has been received, issued by the branch of
the bank drawn i.e. payable at some other place (branch) of the same bank. If two banks are
involved then the DD is sent to other bank but in other case it is handed over to the applicant.

3.1.5.2 Pay Order P.O

A banker’s payment order is an instrument drawn at him. Implicit in a payment order is an

undertaking on the part of the banker to pay a certain sum of money, on the presentation of the
instrument. The payment orders are generally issued for a client.

3.1.5.3 Pay Slip

Pay Slip is an instrument, which is issued by the bank for the purpose of payments of its own
expenses to the concerned suppliers/parties.
The procedure for issuing the pay slip is as following:

Firstly relevant vouchers are sent from the accounts department to the remittance department for
issuance of pay slip. Separate stationery is used for pay slip and after entering correct particulars
according to the vouchers, it is signed by the two authorized officers.

General Ledger A/C of Bills Payable Pay Slip Issued is credited against the debit of expenses to
the relevant G/L Head.

The pay slip is then handed over to the customer after entering in pay slip issued register. Pay
slip is just like a cheque and the bank is liable to pay its amount either in cash or through clearing
to another bank where the beneficiary is maintaining his account.

When the bank for payment receives pay slip, it is again entered in the register in the column of
payment with date of payment. Then the payment is made and it is posted in the computers also.
At the time of payment the bills payable account is debited.

3.1.5.4 Telegraphic Transfer

Generally a mail transfer advice reached the Drawee Branch the next day, where courier
arrangements exist. However, when it is sent through post offices, it usually takes 2 to 3 days to
reach its destination. But sometimes, an individual whether customer or not, demands that his
funds should be transferred from one place to another place through the quickest means. In such
cases, transfer of funds message is passed on through a telegram, express, to the Drawee branch
of the bank. A tested message is sent to the Drawee Branch followed by the confirmation copy.

In this case the payment is immediately required by the payee, the tested message is given on the
telephone.

Besides normal charges as those recovered on issuance of demand draft, the bank charges on
additional expenses, i.e., Telephone Charges/Fax Charges of Rs.150/- are also recovered from
the customer.

3.2. The Skills Which I Have Learned

 1I have learned how to deal with customers.

2I have learned how to deal with people from different backgrounds.

3I have learnt to adapt to a variety of tasks.

4I have gained persistence to complete tasks.

5I have gained ability to plan with and work cooperatively with others.

6I have learnt how to deal in stressful or hectic situations.

3.3. Challenges which I have faced

During my internship I have learned a lot from my bank but there were also some hurdles, some
challenges which I have faced. They are as follows.

1There were six more internees which were doing internship with me so ratio of learning was
low.

2Some of the officers had very stick behavior so it was difficult for me to work with them but
still I had work.

3The biggest challenge for me was to cover the maximum things which I could cover in just
42 days.

4The branch which I have chosen was the busy branch of ACBL that’s why the work load
was quite heavy over there.
COMPANY ANALYSIS
4.1 Swot Analysis

SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of
planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses,
opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and
threats are external factors.

Strengths

1Implementation of advance technology in all branches recently Askari bank has

purchased new software which is UNI software because of it the staff can perform
much faster.

2Professional staff, right person hired on the right place.

3With the passage of time askari bank has expand their branches and now running
almost 140 branches.

4Askari bank is providing quality services to it customers.

5One distinctive feature of the bank is that it is the only bank working for the welfare
of army officers, which was established by the Army Welfare Trust.

Weaknesses

1Askari bank has lesser number of branches as compare too many other branches.
Due to this problem army officers cannot avail the benefits of their own bank

2As far as deposits rate are concern askari bank has very low deposits rates.

3Need to work more on agriculture and Islamic banking.

4Plan makers of ACBL are not competent they are not focusing on the marketing
 (new product development, attract new customers)

Opportunities

1Askari bank is surrounded by many competitors. It has an opportunity to do

aggressive marketing to increase its business.

2Offshore, Islamic and corporate banking

Threats

1ACBL has many competitors, which are continuously increasing its products and
marketing aggressively. It may cause its customers to shift to competitors.

2Some other banks have competent taskforce, which is also threat for ACBL because
human resource is the most valuable resources.

4.2 Competitive Analysis

In competitive analysis we analyze that on which ground our company has a competitive edge on
its competitors.A competitive advantage is an advantage over competitors gained by offering
consumers greater value, either by means of lower prices or by providing greater benefits and
service that justifies higher prices. Askari bank has some competitive edge on the following
ground.

1UBL bank gives free ATM card but requires you to maintain Rs.10000/-Avg monthly
balance, otherwise deducts Rs.200/month while Askari bank does not deduct any charges.

2Askari bank is offering I Net facilities but Alfalah bank is not offering such facility.

3Union bank charges Rs. 20/ leaf for cheque book and Askari charge Rs. 5/ leaf.

4If you are an account holder of Askari bank then you can enjoy the online information
facility you can also transfer your funds but ABN AMRO do not provide such type of
 facilities.

5ACBL provide online utility bills payment facility like PTCL, Mobile Bills etc, but
Standard chartered do not provide this facility to its account holders.

6The withdrawal limit of Askari ATM card is Rs. 25000 but HSBC withdrawal limit is
15000.

7BOK is not offering ATM card do you believe?

8BOP charges Rs. 10 for each ATM transaction but Askari do not cut any charges on ATM
transaction.

9ACBL provide you free account statement twice in a year but after that deduct Rs.50 if you
want to take more than provided limit and hand over you on the spot but Standard
chartered gives you monthly statement, deducts Rs.50 per statement and usually hand
over you after 1 day.

10The initial deposit of ACBL current account is Rs. 5000 but initial deposit of S.C current
account is Rs. 25000.

11Minimum balance requirement for profit of ACBL SB account is Rs.10000 while standard
chartered requirement is Rs. 25000.

12ACBL provides free online transfer up to Rs 1.0 million and every branch is online.

13Free issuance of traveler’s cheques with incentives for retention beyond one month.

14As far as profit rates are concern Askari bank offers very low profit rate currently Askari
profit rate is 9% for 5 years but Faysal bank is giving 11% for one year.

15Askari bank cut Rs.175 ATM charges after every six months but Bank Alfalah does not
cut any ATM charges from its customers.
 16As compare to HBL, ABL, UBL, NBP, and MCB, askari bank has very less number of
branches.

4.3 RATIO ANALYSIS

2008 (%) 2007 (%) 2006 (%)

Return on Assets 2.8 3.7 4.1

Return on equity 17.7 27.4 32.1

Rate paid on funds 3.05 2.36 2.6

5.8
Net Interest Margin 5.8 5.5
Reserve as a percentage 188 334 451
of loans

Debt to Equity 879 932 1043

Advances to Assets 50.5 45 50

Equity to Assets 10 9 8.4

Equity to advances 30 48 17

Deposit times capital

1 times 1 times 9.5 times

1The ROA shows declining trend which means the overall effectiveness in generating profit
with available assets is decreasing in current year 2.8% as compare to 3.7% in 2007
&4.1% in 2006 which means the assets not properly utilizing to generating profit,ROA
major Effected by declining in Net profit.

2ROE also shows declining trend since last few years return against equity is decreasing
because of decrease in Profit before taxation in current year is less as compare to 2007 &
2006.

2Rate of interest paid from assets is improving this is because of increase in interest expense.

3Net interest margin is greater in 2008 which is 5.8% as compare to 5.5% in 07, this
improvement is because of increase in Net interest income which is caused by increase in
interest earned.
4Reserves as percentage of loan decreasing means reserve account to cover un expected
default on loans by borrowers is decreasing, non performing loans decreasing and the
effect on provision for loan losses decreasing and Net income & earning/share also less.

5Debt to Equity shows declining which means the dependency on debt is decreasing and also
the difficulty regarding to borrow more funds.

6Advances to Asset measure total Advances outstanding as percentage of total asset, current
year ratio is 50.5% which is more than 07 & 06 which indicates that ACBL is loaned up
and its liquidity is decreasing this increase risk to default.

7Equity to assets is common measure used to analyze capital adequacy of bank, the adequacy
of ACBL shows increasing trend.

8Equity to advances reflects the degree of equity coverage to outstanding advances/loans, the
degree of equity coverage to outstanding is decreasing, and this decrease is because of
increase in loans/advances in current year.

9Deposit time capital in 2008 & 2007 shows that deposits and equity are equal but in 2006
deposit was 9 times greater than equity which was because of greater increase in
deposits.
RECOMMENDATION AND CONCLUSION
 5.1 Recommendation

Although the working of the Bank is really good but there is always some room for
improvement. After working in Askari Commercial Bank as an intern, I would like to give the
following suggestions:

17Measures should be taken to resolve internal conflicts (office politics) so that work
environment remains smooth and calm.

18 There should be a proper coordination between the coworkers, so that the desired results
could be achieved. Like in case of personal loan there should a proper coordination
between the telemarketer and the sales executive for the daily sale calls, and also there
must coordination among the sale executive and the collection officer, who is responsible
to collect the monthly installments.

19 The bank should look for new systems processes, procedures, to get a desired result in
the sales area. The department can cut cost in one area and spend this extra cost on sales.
Extensive research is also important in this regard.

20Flexibility should be there in the work environment to some extent.

21Right people should be hired with related field of education in the Bank.

22Delegation of work is not proper.

23Sufficient space should be provided to the employees in order to work in comfortable

atmosphere because the working space is very congested.

24 The office should be closed at 5 o clock which the official closing time, the over work
reflects that the particular organization is not efficient and effective.

25There should be proper cafeteria in the Bank so that people can have proper lunch in the
office instead of going out at far places to take lunch.
5.2 Conclusion

Askari Commercial Bank Limited works as a unit of Army Welfare Trust and was established
for the welfare of army officials. ACBL started its operations from April 1 1992 as a public
limited company and has since expanded into a nation-wide presence of 140 branches, handled
by a human capital of 5000 employees and lowest turnover in Pakistani Banking sector.

ACBL continues to scale new heights in all areas of its operations. The safety and security of
depositors’ funds, high productivity and optimum use of technology are the hallmarks of its
corporate strengths.

Basically I have worked in ACBL and was rotated in different departments. i.e., Credit, Deposits,
Remittance, OBC/Lockers etc. where I have performed different activities and gained
experience. I have improved different skills of mine and learned some new as well. I really
enjoyed working over there.

In the whole internship, the courses (I have studied in MBA), which helped me are the Finance
courses, IT and Management. I have tried my best to utilize my skills and to learn the most.
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Online References:

1www.askaribank.com.pk

2http://en.wikipedia.org/wiki/History_of_banking

3http://en.wikipedia.org/wiki/Bank

4http://www.historyworld.net/wrldhis/PlainTextHistories.asp?historyid=ac19